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Key Insights:
- Bitcoin ETFs post only 3 days of inflows in April; Grayscale GBTC leads major outflows
- XRP and SOL trading volumes surge in early April, but social engagement quickly declines
- Mantra (OM) token price drops from $6 to under $1 as open interest plunges over $190 million
The crypto market started April on shaky ground. Bitcoin ETFs saw persistent outflows, Mantra’s token crashed, and altcoin interest faded fast. Market value declined, the fear index dropped to 30, and traders remain cautious.
Bitcoin ETFs See Limited Support as Outflows Persist
In the first half of April, Bitcoin exchange-traded funds (ETFs) recorded net inflows on just three trading days. April 2 posted the strongest inflow at $218.1 million. However, by April 8, ETFs saw a net outflow of $326.3 million—the largest single-day loss of the month.
GBTC’s redemptions continued to be large. On April 16th, it saw $171.1 million in outflows. In total, GBTC has lost $22.78 billion across all funds. BlackRock’s IBIT and Fidelity’s FBTC were among some ETFs that posted gains. On April 16th, IBIT made $30.6 million and FBTC added $113.8 million. However, these inflows were not enough to offset the outflows from larger funds.
Total ETF flow for the month is still weak. On April 17th, zero inflow was recorded across all listed ETFs. Moreover, the Crypto Fear and Greed Index also reflected the fear in the market, dropping to 30, which is in the “fear” category.
Market Value Dips as Traders Stay Hesitant
On April 17th, the total market value of cryptocurrencies was $2.64 trillion, down 0.16% from the previous day.
The market long/short ratio was 1.002, meaning the number of long positions was almost equal to the number of short positions. Although the number is technically in the “bullish” range, it is close to its lowest point in a week. This implies that traders are not overly bullish or bearish.
At the time of writing, there was little movement in price changes across the broader market. Bitcoin rose by 0.78% in a single day, and Ethereum also climbed slightly. But in a 7-day period, Bitcoin was up by 6.63%, XRP was up by over 5%, and Solana (SOL) also moved up. The short-term recovery was not enough to help the 30-day trend, as XRP lost value for the month.
XRP and SOL Volume Spikes Show Temporary Market Attention
At the beginning of April, trading activity and social media interest in XRP and SOL spiked, but by mid-month, it quickly dropped. XRP’s volume spiked to over 9.5 billion on April 7th and fell to 3.06 billion by April 15th. However, during the same period, its social volume fell sharply from over 2,500 mentions to just 13.
SOL showed similar behaviour. Trading volume fell from a high of 6.6 billion to 3.29 billion, and social mentions from over 700 to 61. The drop in attention indicates that traders left these tokens in the wake of the early April rally.
XRP exchange flow balances are fluctuating, according to on-chain data. High inflows to exchanges were matched by price increases around mid-November, but this was not repeated in April. Instead, sideways price action was accompanied by more stable exchange flows, suggesting cautious trader behaviour.
Mantra Token Faces Steep Losses After Collapse
Between April 10 and April 15, the price and market activity of Mantra (OM) dropped sharply. In just a few days, the price fell from above $6 to below $1. The measure of active contracts, open interest, declined from $291.7 million to $94.9 million, indicating that a lot of traders closed their positions.
Funding rates turned negative across exchanges, indicating that short sellers dominated the market. This further pressured the OM price as traders bet on continued downside.
Although OM rebounded slightly on April 15, it remained below $1. The collapse sparked concerns about broader market fragility, especially amid already falling ETF inflows and weakening sentiment.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
